Steel Authority of India Limited Results Presentation for Q4 & Fy 2018-19 Steel Authority of India Limited
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STEEL AUTHORITY OF INDIA LIMITED RESULTS PRESENTATION FOR Q4 & FY 2018-19 STEEL AUTHORITY OF INDIA LIMITED Economic & Steel Scenarios WORLD ECONOMIC SCENARIO 4.7 4.6 4.5 3.8 3.7 3.5 Growth Rates ( in %) 2.4 2.3 2017 (E) 2 2018 (E) 2019 (P) World Advanced Economies Emerging & Developing Economies Global growth in 2019 & 2020 is projected at 3.5 and 3.6 percent SOURCE: IMF INDIAN ECONOMIC SCENARIO GDP Growth % at Constant Prices RE: Revised Estimates (2011-12 Prices) AE: Advance Estimates 8.2% 8.2% 7.2% 7.2% 7.0% 6.1% 2013-14 2014-15 2015-16 2016-17 (2nd 2017-18 (1st RE) 2018-19 (2nd RE) AE) Source (Year) Growth Projection ADB (2019) – market prices 7.6 % IMF (2019) – market prices 7.5 % SOURCE: CSO, GoI & Economic Survey WORLD STEEL SCENARIO Crude Steel Production (mtpa) 1809 1730 (Crude Steel Production) 1627 In 2018 : Asia : 1271 mtpa World 928 880 808 819 871 859 • China : 928 mtpa China • India : 107 mtpa Rest of World • Japan: 104 mtpa USA : 87 mtpa 2016 2017 2018 World Steel Association (WSA) forecast : Finished Steel Consumption (mtpa) • Global steel demand will increase by 1.3% in 2019 and 1% in 2020 1712 1735 1752 1597 • Steel demand in China is expected to 1546 1551 1505 1521 decelerate in 2020. • In the Emerging and Developing Economies excluding China, steel demand is forecast to grow by 2.9% in 2019 and 4.6% in 2020. • India set to grow fastest amongst major steel consumers at 7.1% and 2013 2014 2015 2016 2017 2018 2019 2020 7.2% in 2019 and 2020 respectively. (F) (F) INDIAN STEEL SCENARIO • India’s Crude steel Crude Steel Production (mtpa) production (2018) : 106.5 95.5 101.5 89.0 106.5mtpa (growth 81.3 87.3 4.9% of 4.9 % over 2017) • As per WSA, Short Range Outlook, demand in India is set to grow at 7.1% in 2019 2013 2014 2015 2016 2017 2018 and 7.2% in 2020. Finished Steel Consumption (mtpa) • India to overtake USA as the second largest 110 96 103 84 89 consumer of steel in 74 76 80 2019. Source: WSA 2013 2014 2015 2016 2017 2018 2019(F)2020(F) INDIAN STEEL PERFORMANCE % +/- Over INDICATORS UNIT 18-19 17-18 CPLY Real GDP Growth Rate # % 6.6 7.2 -0.60 Growth in Index of Industrial Production ^ % 3.6 4.4 -0.80 Exchange Rate ( Wt. Avg. of RBI Ref. Rate) Rs/USD 69.89 64.45 -8.43 Production - Finished Steel * MT 131.57 126.86 3.7 Imports - Finished Steel * MT 7.83 7.48 4.7 Exports - Finished Steel * MT 6.36 9.62 -33.9 Consumed for Downstream Processing* MT 33.01 32.40 1.9 Consumption - Finished Steel * MT 100.04 92.32 8.4 Less Variation in Stock * MT 2.50 1.61 55.7 Real Consumption of Finished Steel * MT 97.54 90.71 7.5 # 18-19 data is for Q3 18-19 ^ As per CSO data *Source JPC Report 7 INTERNATIONAL PRICE (FOB) TREND USD/Tonne HRC- China CRC- China 631 628 609 611 615 619 614 622 621 616 615 595 590 591 568 552 545 556 553 586 593 588 593 525 522 575 564 572 579 579 574 571 551 547 545 531 529 506 513 522 480 486 HRC- CIS CRC- CIS 652 651 627 632 617 622 612 618 614 600 596 576 594 577 556 551 567 554 538 527 544 606 598 581 574 589 567 551 544 560 548 560 540 526 514 512 490 499 494 483 465 452 Sep-17 Nov-17 Jan-18 Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19 May-19 STEEL AUTHORITY OF INDIA LIMITED Performance Highlights PERFORMANCE HIGHLIGHTS : FY2018-19 Net Sales : Rs 66267 Crore FINANCIAL EBITDA : Rs 10267 Crore PERFORMANCE PBT : Rs 3338 Crore PAT : Rs 2179 Crore Hot Metal Production : 17.513 MT Crude Steel Production : 16.264 MT PRODUCTION & SALES Saleable Steel Production : 15.069 MT PERFORMANCE Semis component in production : 21.59 % of saleable steel Value Added Production : 6.897 MT Production through concast route : 13.804 MT Saleable Steel Sales : 14.115 MT PERFORMANCE HIGHLIGHTS : Q4 FY2018-19 Net Sales : Rs 18323 Crore FINANCIAL EBITDA : Rs 2461 Crore PERFORMANCE PBT : Rs 712 Crore PAT : Rs 468 Crore Hot Metal Production : 4.671 MT Crude Steel Production : 4.338 MT PRODUCTION & SALES Saleable Steel Production : 4.123 MT PERFORMANCE Semis component in production : 24.51% of saleable steel Value Added Production : 2.122 MT Production through concast route : 3.745 MT Saleable Steel Sales : 4.133 MT SAIL STOCK PRICE MOVEMENT SAIL's Share Price (Rs.) Sensex Points 39832 37607 38673 36227 36194 36257 33213 34057 34184 35322 32515 38645 39032 31146 30922 35965 35160 35423 36068 35867 32969 34442 31730 31284 33149 92 78 89 83 83 78 76 78 80 77 70 68 63 61 64 54 55 54 56 47 51 57 58 56 48 Closing Share Price and Sensex as Dividend on the last day of the month Interim Final Total Dividend Tax (%) (%) (%) (Rs. crore) * As on May 30, 2019 (Rs. crore) FY 18 - - - - - FY 17 - - - - - DIVIDEND FY16 - - - - - PAYOUT FY15 17.5 2.5 20 826 165 FY14 20.2 - 20.2 834 142 FY13 16 4 20 826 134 STEEL AUTHORITY OF INDIA LIMITED Operational Performance PRODUCTION PERFORMANCE All figures In Million Tonne 15.1 4.1 13.9 14.1 12.8 12.4 3.6 SALEABLE STEEL PRODUCTION (incl. SSPs) FY 15 FY 16 FY 17 FY 18 FY 19 Q4 FY18 Q4 FY19 Annual Quarterly 14.7 13.8 13.4 4.0 12.4 11.9 3.5 SALEABLE STEEL PRODUCION (5 ISPs) Q4 FY18 Q4 FY19 FY 15 FY 16 FY 17 FY 18 FY 19 PRODUCTION PERFORMANCE : FY19 11.4% 1.3% CRUDE STEEL BOF 15.1% Ingot PRODUCTION EAF Route BY PROCESS THF CC 84.9% Route 87.3% SALEABLE STEEL 45.8% Commodity PRODUCTION 54.2% Value Added BY PROCESS PRODUCTION PERFORMANCE : FY 19 SAIL 21.6% PRODUCT MIX : 50.8% 5 ISPs 27.6% BSP 23.6% 61.0% 15.4% DSP 32.0% 68.0% Flats RSP 89.3% 10.7% Longs Semis BSL 99.6% 0.4% ISP 58.8% 41.2% SALES PERFORMANCE All figures In Million Tonne 14.1 14.1 13.1 4.13 11.7 12.1 3.74 TOTAL SALES (incl. SSPs) FY 15 FY 16 FY 17 FY 18 FY 19 Q4 FY 18 Q4 FY 19 Annual Quarterly 13.8 13.8 12.7 11.7 4.03 SALES 11.2 3.67 OF 5 ISPs Q4 FY 18 Q4 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 STEEL AUTHORITY OF INDIA LIMITED Efficiency & Sustainance Performance NEW PRODUCTS DEVELOPED DURING FY19 NARRROW PARALLEL FLANGE BEAM 750: USAGE IN CONSTRUCTION INDUSTRY LINKE HOFMANN BUSCH (LHB) WHEELS: USAGE FOR RAILWAYS PRODUCT CUSTOMISATION FOR END USERS HYVA TIPLERS Main Frame Track Frame HSMP AND PMP GRADE: IS 2062E450, E600 Boom Front Frame Arm PRODUCT CUSTOMISATION FOR END USERS ASHOK LEYLAND U TRUCK U 2518T CAPTAIN 2518 HRC PMP GRADE: IS5986, ISH500, LAHFQ450 PRODUCT CUSTOMISATION FOR END USERS Rear Axle Beam developed using HRC SAILFORMING 410 / 450 grades Live Axle Beam Dummy Axle Beam TECHNO-ECONOMIC PARAMETERS Coke Rate: kg/thm CDI Rate(for CDI Furnace only): kg/thm 77 77 513 504 489 66 473 456 452 58 58 55 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 Reduction of 11.9% over FY14 Increase of 40% over FY14 3 Specific Energy Consumption: GCal/tcs BF Productivity: T/m3/Day 1.70 6.59 6.60 6.52 6.51 6.49 6.50 1.67 1.65 1.58 1.58 1.56 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 Reduction of 1.3% over FY14 Improvement of 4.4% over FY14 SUSTAINANCE PARAMETERS PM Emission Load: kg/tcs Specific CO2 Emission: m3/tcs 0.83 2.65 0.81 0.77 2.61 2.60 0.74 2.57 0.70 2.56 FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 Reduction of 16% over FY15 Reduction of 3% over FY15 3 Solid Waste Utilisation (%) Specific Water Consumption: m3/tcs 85 84 83 83 85 3.83 3.75 3.66 3.62 3.44 FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY17 FY18 FY 19 Consistent Utilisation of Solid Waste Reduction of 6% over FY15 MANPOWER PERFORMANCE LABOUR PRODUCTIVITY TREND (tcs/man/year) 389 344 320 302 315 Improvement 278 258 of 50% over FY13 FY 13 FY 14 FY 15 FY 16 FY17 FY18 FY19 3 LABOUR PRODUCTIVITY DURING 2018-19 MANPOWER (tcs/man/year) 407 426 373 362 Total manpower as on 01.04.2019: 72339 Reduction in 2018-19: 4531 Q1 FY Q2 FY Q3 FY Q4 FY 19 19 19 19 POWER CONSUMPTION – FY 19 9.99% Own CPP Drawl from Grid 50.02% Purchase through 37.45% Power Exchange JV CPP 2.54% STEEL AUTHORITY OF INDIA LIMITED Financial Performance FINANCIAL PERFORMANCE Rs. Crore FY19 FY18 Q4 FY 19 Q3 FY 19 Q4 FY 18 (INDAS Compliant figures) Sales 66267 58297 18323 15660 16811 EBITDA 10267 5102 2469 2653 2574 Depreciation 3385 3065 890 855 848 Finance Cost 3155 2823 803 825 917 PBT Before Exceptional Items 3727 -785 766 973 809 Exceptional/Abnormal Items (VRS/Suspended Operations) 389 -26 55 23 -377 PBT After Exceptional Items 3338 -759 712 950 1186 Tax 1159 -277 244 333 370 Profit After Tax 2179 -482 468 616 816 FINANCIAL PERFORMANCE Annual Profit Trend 10267 EBITDA 7112 Cash Profit 5590 PBT 5102 3866 PAT 3338 2345 2079 2280 2179 672 -153 -482 -759 -1619 -2203 -2833 -4021 -4851 -7007 FY 15 FY 16 FY 17 FY 18 FY 19 All figures in Rs crore FINANCIAL PERFORMANCE 2653 2461 1828 Quarterly 1657 Performance 950 712 616 Q4 FY 19 vs 468 Q3 FY 19 Q4 FY 19 Q3 FY 19 EBITDA Cash Profit PBT PAT All figures in Rs crore 2461 2574 Quarterly 1657 1658 Performance 1186 Q4 FY 19 vs 712 816 Q4 FY 18 468 Q4 FY19 Q4 FY18 FINANCIAL PERFORMANCE 2653 1447 2461 294 74 446 EBITDA 589 Movement Q4 FY 19 vs Q3 FY 19 EBITDA Q3 Price Volume Raw Cost Others EBITDA Q4 FY19 Impact /Mix Material FY19 Usage All figures in Rs crore 2574 495 229 150 184 2461 45 EBITDA Movement Q4 FY 19 vs Q4 FY 18 EBITDA Q4 Volume Price Raw Cost Others EBITDA Q4 FY 18 /Mix Impact Material FY 19 Usage FINANCIAL PERFORMANCE Annual Net Worth Annual Borrowings & Interest cost 45409 45170 45000 41396 3500 43523 40000 35141 39196 35000 31837 36009 35714 38152 3155 30000 2823 2500Annual 25000 2528 20000 2300 Borrowings 15000 1500Interest 10000 1454 5000 Cost 0 500 FY 15 FY 16 FY 17 FY 18 FY 19 FY 15 FY 16 FY 17 FY 18 FY 19 Quarterly Net Worth Quarterly Borrowings & Interest cost 46818 50000 45409 46477 44997 45170 1000 45000 35714 36254 36851 37441 38152 950 40000 900 35000 917 850 30000 800Quarterly 25000 826 803 750 20000 Borrowings 755 771 700 15000 650 10000 600Interest 5000 550Cost Q4 FY Q1 FY Q2 FY Q3 FY Q4 FY 0 500 18 19 19 19 19 Q4 FY Q1 FY Q2 FY Q3 FY Q4 FY All figures in Rs.